Transcript Recognizing & reducing liability in an i

Thank you for joining us! Today's webinar is hosted by:
Sathab Abbo, Corporate Immigration
Counsel & Sr. Product Director
Melissa Prentice, Executive Sales Manager
i9advantage.com
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RECOGNIZING & REDUCING LIABILITY IN AN I-9 AUDIT
RECOGNIZING & REDUCING
YOUR LIABILITY IN AN I-9 AUDIT
AGENDA
What’s There To Talk About?
Your Roadmap to Form I-9
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Why I-9 Noncompliance May Cost You Millions
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ICE Audits & Raids
3
Enforcement & Trends
4
The Pitfalls of Paper I-9
5
Options for Cleansing I-9 Forms
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Remote Hiring Trends & Requirements
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Remote Hiring Hazards
8
Employer’s Obligations
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E-Verify
10
Best Practices
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WHAT IS FORM I-9?
Your Roadmap to Form I-9
• Verifies identity and employment authorization of people
hired to work in the U.S. – citizens AND noncitizens.
• Required for every person hired after November 6, 1986.
• Contains 3 Sections:
•Section 1 - Completed by Employee.
•Section 2 - Completed by Employer.
•Section 3 - Completed by Employer for rehire or re-verification.
• Employee completes Section 1 on or before 1st day of hire.
• Employer (or its agent/representative) examines original documents and completes
Section 2 within 3 business days, after the day of hire (3 day rule).
• NO exception for Remote Hires.
• Employee attests to his or her employment authorization, and presents the employer with
acceptable documents evidencing identity AND employment authorization.
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FINES AND PENALTIES
Why I-9 Noncompliance May Cost you Millions
Hiring violations:
$375 to $16,000 per violation - with higher
penalties for repeat offenders.
Form I-9 violations: $110 to $1,100 per violation.
ICE penalty considerations
1.
2.
3.
4.
5.
Size of the business
Good faith effort to comply
Seriousness of violation
Violations involving unauthorized workers
History of previous violations
Recent Penalties
Calamari's III Inc. (2013):
Pureview LLC (2013):
Macy’s (2013):
GPX (2013):
Grand America Hotels (9/2014):
Infosys (2013):
$24,000 (only 5 suspect documents)
$30,000 (only 21 suspect documents)
$275,000
$279,000
$2,000,000
$34,000,000
Scenario 1
Employer has 1,000 I-9 Forms, at a 68% error rate and average of $600 fines/form.
680 x $600 = $408,000 in fines.
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First Offense
Civil Violations
Minimum
Second Offense
Maximum
Minimum
Third Offense
Maximum
Minimum
Maximum
Hiring or continuing to employ a person, or recruiting or
referring for a fee, knowing that the person is not authorized
to work in the United States.
$375 per
worker.
$3,200 per
worker.
$3,200 per
worker.
$6,500 per
worker.
$4,300 per
worker.
$16,000
per worker.
Failing to comply with Form I-9 requirements.
$110 per
form.
$1,100 per
form.
$110 per
form.
$1,100 per
form.
$110 per
form.
$1,100 per
form.
Committing or participating in document fraud.
$375 per
worker.
$3,200 per
worker.
$3,200 per
worker.
$6,500 per
worker.
$3,200 per
worker.
$6,500 per
worker.
Committing document abuse.
$110 per
violation.
$1,100 per
violation.
$110 per
violation.
$1,100 per
violation.
$110 per
violation.
$1,100 per
violation.
Unlawful discrimination against an employment-authorized
individual in hiring, firing, or recruitment or referral for a fee.
$375 per
violation.
$3,200 per
violation.
$3,200 per
violation.
$6,500 per
violation.
$4,300 per
violation.
$16,000
per
violation.
Asking an employee for money guaranteeing that the
employee is authorized to work in the United States, also
called an indemnity bond.
Criminal Violations
•
Engaging in a pattern or practice of hiring, recruiting or
referring for a fee unauthorized aliens.
•
Pay $1,100 for each bond the employee paid to the
employer.
•
Refund the employee the full amount of the bond. If the
employee cannot be found, this refund will go to the U.S.
Treasury.
First Offense
•
Up to $3,000 per
unauthorized alien.
Up to 6 months in prison
for the entire pattern or
practice.
Second Offense
•
•
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Up to $3,000 per
unauthorized alien.
Up to 6 months in prison
for the entire pattern or
practice.
CIVIL FINES AND CRIMINAL PENALTIES FOR FORM I-9 VIOLATIONS
How Fines Add Up…
Third Offense
•
•
Up to $3,000 per
unauthorized alien.
Up to 6 months in prison
for the entire pattern or
practice.
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I.C.E
WHAT’S THE RISK?
Are You At Risk of An ICE Audit?
YES!! Every Employer Is.
HSI (Homeland Security Investigations) conducts audits
to protect employment opportunities for nation's
lawful workforce and to target businesses that
knowingly employ unauthorized workers.
ICE has cast a wide net – staffing agencies, IT companies, restaurants, non-profits, retail,
construction, ethnic stores, bakeries, manufacturing companies, food packaging, janitorial
services, catering, and many more…
ICE: The integrity of I-9 records is as important as that of tax records.
When deciding who to prosecute, lack of or defective I-9 Forms are a “smoking gun” for
ICE.
If you receive an ICE Notice of Inspection (NOI): you only have 3 business days to produce
original I-9 forms.
Do not destroy any documents, attachments, old I-9 Forms, or company records once a
NOI is received.
Hire counsel – (Immigration and Criminal Defense).
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Major shift in policy/enforcement.
Bush: more raids, building lock-downs, interrogating workers, and deportations.
Obama: fewer raids, more audits, investigations and fines, targeting employers
(more criminal/civil liability on employers).
Audits increasing each year.
Fines increasing each year:
FY 2003 – 2008: $1.5 million in fines.
FY 2009 – 2012: $31.2 million in fines.
States are pushing for mandatory E-Verify.
Rise in DOJ’s Office of Special Counsel (OSC)
investigations for unlawful discrimination.
ICE I-9 Audit Trends
4000
2000
2000
1000
3000
2496
3000
1444
503
250
0
2007
2008
2009
2010
2011
2012
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WHAT IS ICE UP TO AND WHAT CAN WE EXPECT?
Enforcement and Trends
ARE YOUR PAPER FORM I-9S COMPLIANT?
The Pitfalls of Paper I-9s
Legacy I-9s: Are they compliant?
If not, you’re at risk.
Incorrect info?
Missing signatures, date, or checkboxes?
Missing forms altogether?
Originals examined?
Have forms been re-verified?
Valid ID documents reviewed?
Old I-9s purged according to 1/3 year rule?
Keeping copies of photo IDs for E-Verify?
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Good (Manual Correction) – Auditing and correcting by hand on a large scale is
time consuming with high labor costs. Note: Same person auditing will not
detect errors.
Better (Electronic Detection with Manual Corrections) – System scans I-9 forms
and reports errors, so manual corrections can be made. Note: 3rd party review
is better.
Best (Auto-cleanse) – System scans I-9 forms, detects errors, and presents a
review of electronic corrections to employer and employee. Products
automatically resolve overwhelming majority of I-9 errors, so employers can
make their active I-9 forms totally compliant using relatively limited time,
effort, and expense. Note: 3rd party review with standardized process is best.
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CHOOSING THE RIGHT COMPLIANCE SOLUTION
Options For Cleansing I-9 Forms
KNOW THE RULES ON REMOTE HIRING
Remote Hiring Trends and Requirements
Trending in 2014
20%-30% of US companies hire remote staff to work from home as
call center agents.
34M Americans work from home. By 2016, expected 63M+ or 43%
of US workforce.
Companies are developing processes to hire and successfully build
a team of remote employees.
Remote Hire Requirements
Employers can designate authorized Agent to fill out Forms I-9 on behalf of company (Personnel Officers,
Foremen, Agents, Attorneys, or Notary Public, etc.)
DHS doesn’t require authorized Agent to have specific agreements or other documentation for Form I-9
purposes.
Notary Public acts as authorized Agent of the employer, not as notary. No notary seal on Form I-9.
Authorized Agent must physically examine original documentation for Section 2 with employee physically
present.
Employer is still liable for any violations in connection with the form or the verification process.
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Using Skype or Webcam for examining original
documents.
Accepting document copies or faxes.
Using Untrained Agents. Screen and train your remote
network to ensure they understand Form I-9 procedures,
or have an electronic system in place to guide Agents in
the I-9 process.
Operating without Standard Operating Procedures (SOP) or
Remote Hire User Guides.
Scrambling to quickly locate qualified/professional Notaries in
the area.
Notary Scheduling Glitches. Who’s meeting whom? Where and
when?
Scenario 2
A recent audit of a company with 90% remote hires found over-documentation
or insufficient documentation, and the Agent’s company name and/or
addresses were used in lieu of the Employer’s name and address.
AVOID THESE REMOTE HIRING DANGERS
Remote Hiring Hazards
WHAT’S YOUR ROLE IN THIS?
Employer’s Obligations
• Cannot hire people without valid work
authorization.
• 3 yr & 1 yr Retention Rule: Employers must
“retain and store” Form I-9 for 3 yrs after the
date of hire OR for 1 yr after termination,
whichever is later.
• Purging old I-9 forms as a best practice:
• Frees up storage space.
• Reduces exposure to risks, fines, and penalties.
• If audited, companies are liable for errors on old I-9s also.
• Fewer I-9s to be concerned about with regard to compliance.
• The form must always be available for inspection by authorized U.S.
Government officials – DHS, OSC, DOL, or DOJ.
• Cannot discriminate or request specific documents For I-9.
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ENHANCING AND IMPROVING THE I-9 PROCESS
E-Verify
• Compares employee’s I-9 data to DHS and SSA databases.
• Designed to ensure that documentation presented is valid.
• Mandatory Employee SSN (or can be hired, and submitted
later).
• Instant Verification of Employment Eligibility.
• Not used for current employees (except for Federal Contractors).
• Cannot discriminate or terminate for tentative nonconfirmation.
• Cannot use E-Verify or I-9s to pre-screen candidates.
• Enrollees must E-Verify all new employees for that worksite.
• Considered a best practice by many immigration experts.
• Recent enhancements:
• Duplicate Case Alert
• Validation of E-Mail and Phone Number
• Further Action Notice (FAN) Revision for Web Services
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Best Practices
Best
Practices
Audit Your I-9s – often and early.
Create and implement internal training
(including I-9 responsible officer),
compliance program, and plan of action.
Use electronic I-9 system (tracking, error
proof, audit trail, reporting).
3 and 1 year rule: Purge old I-9s for terminated employees (3 years after date
of hire or 1 year after termination) – whichever is later.
Document your I-9 policy – How and when forms are done, storage, access,
reporting, purging.
Tickler notices for expiring work authorization.
Understand E-Verify, use it for new hires, and police your subcontractors.
Copy identity documents - Drivers License, work authorization, green card, etc.
(not required by law).
Keep I-9 Forms separate from personnel files.
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STAY INFORMED
Resources
M-274: Handbook For Employers: USCIS.gov
USCIS Guidance on Completing I-9 for Remote Hires: USCIS.gov
M-775: E-Verify User Manual for Employers: USCIS.gov
ICE I-9 Penalties Chart: ICE.gov
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Let's Recap
Get compliant to avoid HEFTY fines.
Be prepared for an ICE Audit.
Audit and clean your paper I-9 Forms.
Know the remote hiring rules and hazards.
Follow best practices, including an electronic I-9 system.
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Contact Us
Sathab Abbo
Sr. Product Director
Corporate Immigration Counsel
[email protected]
800.724.8546
i9advantage.com
This document is not intended to provide legal advice. It contains general and public information. Any employer facing possible civil or
criminal charges resulting from I-9 non-compliance is encouraged to consult an attorney.
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Presenter:
Melissa Prentice,
Executive Sales Manager
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A LEADING EDGE PROVIDER
100% Cloud-Based Form I-9 & E-Verify® Solutions
Walk-Up Usability
Our system is easy to use and intuitive, making anyone an I- 9 expert.
Increase Efficiency and Productivity
Our software solutions reduce the time spent processing Form I-9s by 75%.
Integrate With Your HR Platform
Seamlessly integrate with your existing HR, and enjoy accessibility and single
sign-on from a wizard-driven platform.
Instant E-Verify® Submission
Instantly submit to E-Verify® with customized options for each user, and
Receive TNC notifications (Tentative Non-Confirmation) immediately.
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Anyone Can Become and I-9 Expert
• Create error-proof I-9s and eliminate the risk of government fines
with precise data validation and error-checking.
• Streamline your I-9 process and reduce the risk of employee
discrimination with a standardized process.
• We maintain the most up-to-date and compliant software by working
closely with the Department of Homeland Security, and our software
development team, to stay ahead of ever-changing regulations.
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Digitally Correct and Convert Historical Paper Form I-9s
• Attempting to self-correct archived Form I-9s will increase your risk of fines.
• I-9 Medic™ eliminates the risk of human error, and preparation time for an
audit, from weeks to minutes.
• I-9 Medic™ eliminates the guesswork and ambiguity of how to amend a failed I9, by thoroughly error-checking & guidance to the user on compliantly
correcting each Form I-9.
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Remote Hiring Made Easy
• 100% paperless and mobile-enabled, I-9 Remote™ reduces the
processing time of Form I-9s remotely from days to minutes.
• Use an authorized company agent, or one of 12,000 trained notaries
available nationally through our Partner Notary Network.
• Notaries trained on the I-9 Remote™ system are proficient in accurately
completing Form I-9s, and will travel to your location to meet your new
hire.
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ANSWERS!
Answers to Commonly Asked Questions
FORM I-9
Q: What is I-9 compliance software?
A: Electronic completion of USCIS’ Form I-9, with compliance, retention, reporting, and audit
tracking capabilities.
Q: Can we really get rid of our paper?
A: Yes! Our solution is 100% paperless.
Q: We already have electronic I-9s; why do we need yours?
A: Is your system a “compliance software solution,” or merely an electronic solution? I-9
Advantage products are both - electronic compliance software solutions.
Q: We are currently using an on-boarding tool to manage our I-9s. Is your product the same?
A: Is your system compliant, or simply electronic? Our system is more than an electronic
solution. It goes one step further to ensure that the data entered is compliant and meets the
requirements of USCIS’ Form I-9.
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ANSWERS!
Answers to Commonly Asked Questions
E-Verify®
Q: We use E-Verify®; isn’t that the same thing as I-9?
A: NO! E-Verify is an Internet-based system that compares information from an employee's
Form I-9, Employment Eligibility Verification, to data from U.S. Department of Homeland
Security and Social Security Administration records to confirm employment eligibility.
Form I-9 is used for verifying the identity and employment authorization of individuals
hired for employment in the United States. Not all U.S. employers are required to use EVerify, whereas all U.S. employers must ensure proper completion of Form I-9 for each
individual they hire for employment in the U.S.
Q: If we choose to use your product, do we still need E-Verify?
A: Yes (example: E-Verify employer, Federal Contractor, mandatory state).
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ANSWERS!
Answers to Commonly Asked Questions
REMOTE HIRING
Q:
A:
Q:
A:
Q:
A:
For remote hires, we wouldn’t want to use authorized agents. Is that compliant? Don’t we always
need to use notaries?
No. If the employer is unable to complete Section 2 of the I-9, s/he may elect to use:
1.
An Authorized Agent (trusted source) that you or your employee have chosen
2.
A notary from our notary network (acting as a trusted source)
We don’t feel comfortable allowing new hires to choose their own representative. Can’t they do
something fraudulent?
Our software ensures the compliance of information being keyed into the system. As the responsible
party you still have complete control to view the documentation provided, as well as the completed
form I-9.
Your remote hire process sounds very much like our current paper process, as we are using
notaries. What’s the advantage?
Our process delivers a comprehensive compliance software versus standard paper process, which is
subject to human error, omissions, and oversights. The software ensures compliance and consistency
with each form.
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CLIENT SNAPSHOT | 1,000+ CLIENTS TRUST I -9 ADVANTAGE™
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Contact Us
@
[email protected]
800.724.8546
Thank you for joining us! We look forward to seeing you at our upcoming webinar.
i9advantage.com
This document is not intended to provide legal advice. It contains general and public information. Any employer facing possible civil or criminal charges
resulting from I-9 non-compliance is encouraged to consult an attorney.
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